You probably already heard everything there is to hear about insurance and the importance of being insured, but for many people, it is the steps they take to getting insured that can be a challenge. There is certainly no shortage of opportunities to becoming insured, but is there a right and a wrong way? The fact of the matter is that there are several options for applying and acquiring an insurance policy, with the key to success being an appropriate amount of research. Don’t ever jump in with both feet unless you know that you have asked all the questions, and here are just a few of them.
The direct approach
Many people who need an insurance policy will look for a company that has a decent history and goes straight to them to satisfy their insurance needs. Insurance may be considered as a gamble by some people, the insurance company may consider you as a risk if the questions they put to you are not answered in an appropriate manner. These answers could cause you to be denied for a policy, just because you were uncertain about the way to answer. The smart option might be to take your business to an insurance broker who may in turn pose the questions a little less intimidating to you.
There are two risks for an insurance policy, one is for the company if you meet your demise too early. The second is for you if the insurance company loses its footing and goes out of business. In the case of the latter, it is all about the “claims ratio.” Is the insurance company paying out more claims than the premiums they are taking in? You don’t have to be a financial genius to understand that this is a recipe for disaster, so check out the stability of the insurance company before signing up with them.
A third party
The benefit of choosing an insurance broker to handle your insurance needs will not be limited to the purchase of the policy you secured. As the person insured, unless you are qualified in the insurance arena, you should always use the services of a broker. It is important to keep in mind that your broker will invariably be there for you, even after the policy has been finalized. Consider the need to update, downgrade or add a new policy in the future, you will already have someone who is familiar with your case and your needs.
The need to change
Every so often, you deal with a company that can change for the worse. When this happens with a broker, it will not affect your insurance policy, in fact, if you have trouble resolving any issues with your broker, changing to another broker is a simple process. Keep in mind that the broker is usually paid by the insurance company based on a policy that they facilitated. Don’t be surprised if the new broker you choose tries to get you to change the policy you have. This change could turn out to be a good thing, so keep an open mind.